Becoming unemployed, or a cutback in hours, is one of the top reasons why many people file for bankruptcy. Being unemployed without a steady source of income is a tough situation for anyone. By law, you do not have to be employed to file for bankruptcy. However, if you are unemployed your job status can affect the outcome of your bankruptcy. Continue reading
It’s normal to worry about will filing bankruptcy affect my employment status and who will find out about my bankruptcy filing. Many individuals who are considering filing for bankruptcy also worry about the effect of the bankruptcy on future employment. They are typically concerned with if a potential employer finds out about the bankruptcy filing; will the employer be deterred from hiring you? This is especially true if you are employed in a position of trust or employed to manage others money.
It is not uncommon for an individual to file bankruptcy, and then need to refile at a later date. For instance, your plan payment under a Chapter 13 bankruptcy (a reorganization) may have been too large. Or you may have additional unforeseen circumstances such as reduced income that caused you to become dependent on credit.
If you are in over your head with debts and are having trouble keeping up with your payments, you may choose to file for bankruptcy. Bankruptcy can offer a chance for consumers to get a fresh start. A Chapter 7 bankruptcy erases most unsecured debts, such as credit card debt and medical debt. A Chapter 13 bankruptcy is a reorganization and allows the consumer to reorganize their debts into manageable payments.
Many consumers who file for bankruptcy want to get rid of all of as many of their debts as possible, but may also want to retain one credit card. You may have a credit card that you only owe a small amount of money on that you want to keep open because it provides you with a lot of perks, such as airline miles or cash back.
Many people who are considering filing for bankruptcy are unsure which type to file, especially if they do not have a bankruptcy attorney to assist with the case. Most individuals file either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy. There are requirements that must be satisfied for each type of bankruptcy, and if an individual meets those requirements, he or she can choose which type of bankruptcy makes the most sense for the situation.
Many people think of bankruptcy as their golden ticket to freedom. They may be mired in debt with little income and few options, and decide to file for bankruptcy. They may schedule a meeting with a bankruptcy attorney or even choose to file bankruptcy themselves, only to find out that the majority of their debts cannot be discharged in bankruptcy.
Some people are unable to obtain a loan for a car, a home, or other debts unless they have a co-signer. Basically, a co-signer is a person who is responsible for paying back your debt if you are unable to repay it yourself. Creditors will sometimes allow someone with a low credit score or no credit and/or a low income to borrow money, but they may require a co-signer with a better credit score, a higher income, or both before they will loan the money.
No, you cannot be legally fired for filing for bankruptcy. I will give you a longer explanation about that in a second, but for now you should think about your fears – why are you afraid your employer would fire you if he or she found out about your bankruptcy filing? Bankruptcies are legal and not uncommon, and normally are not necessarily a reflection on your character as a person.
Bankruptcy and personal injury cases can go hand in hand. When an individual is involved in a serious car accident, slip and fall accident, or another type of accident, he or she is often unable to work for a time or permanently. This can lead to financial devastation, which can lead to bankruptcy. This can happen even though the injured party is expected to receive significant compensation in a personal injury claim.
That’s not exactly the way the process works. By law, if you owe a debt that has not been paid, such as a credit card debt, student loan debt, or unpaid medical debt, and you have assets, those assets can be taken to pay your unpaid bills. However, this process is not an automatic one. There are many legal steps that have to happen before your house or your car could be taken.